FINANCE STOCK AND MINING.

Free Lance, Volume IV, Issue 161, 1 August 1903, Page 24

FINANCE STOCK AND MINING.

THE report of the Alliance Manne and General Assurance Company for 1902 shows net premiums amounting to £147,311, with losses £51,246, and losses and average returns on 1901 account £32,484. From a credit balance of £112,890 the directors transferred £20,000 to the reserve increasing it to £200,000. Distributions equal to 40s per share of £25 v ere made to shareholders. * * * The Suez Canal traffic, of which Australasia furnishes a considerable part, last year showed an increase of 424,500 tons, as compared with an increase of a million tons in the rvrevious year. The receipts, aggregating 103,700,000 francs, or about £4,248,000, were the highest yet recorded. The tonnaee of British vessels using the canal was 6,773,000, rep-resenting an increase exceeding half-a-mallion tons, the British trade accounting for the whole increase shown. German trade, aggregating 1,707,000 tons', showed a decrease of 55,000 tons. The tonnage of the vessels of other nations using the oanal exhibited scarcely any change. * * * Notwithstanding all the adverse predictions, the Accident Insurance Branch of the Government Insurance Department shows a satisfactory improvement for the year 1902. The funds show an increase of £691 for the year, and that is not brought about by chance. Reporting on the business, the Commissioner states thait the premium income amounted to £14,100, an increase of £2244 as compared with the previous year. The total claims, including provision for those not actually settled at the close of the year, amounted to £7364, as against £2428 in 1901, the rate in proportion to the premiums earned showing a marked increase. The total expenses show a decrease of about 4 per cent, on the premium, income as compared with 1901. If the Accident Branch continues at the present rate of progress, the object of establishing the department will have been achieved. * * * In their interim report for the halfyear ended 31st March last, the directors of the P. and O. Steam Navigation Company have a rather gloomy tale to tell of the outlook of business in the Far East. The warning statements made a year ago have been fully justified. Freight earnings are lower by about £90,000, as compared with a gain of £50,000 for the corresponding

period of 1901-1902, and though there has been a considerable amount of tianspoit work, it has had to be accepted at much lower rates than formerly. # The bad effects of the drought in Australia of the plague in India, and of the chaos in China, have all had a, damaging influence on the company's earnings, and it is as yet impossible to see when any permanent recovery will commence. While the company's current year's business with Australia will be curtailed, there is every probability of a great improvement in 1904. * * * The London money market is apparently not in a condition for the reception of colonial loans. The Queensland emission which carries a higher rate than other recent colonial loans, lias been hemmed in with conditions which reduce the net price to the Government to what has, until recently, been regarded as a low price for the 3 per cents. The underwriters' nave expressed their determination not to support further • colonial issues, and they are backed by the London ' Times -" The cessation of colonial borrowing in London will not be such a serious blow to the colonies , at any rate, New Zealand should not feel the position to any extent. The extreme prosperity that we have enjoyed, and continue to experience has enriched the entire community, and the enormous savings of the past are available against any adverse period. The. debenture issue of the Auckland Tramway Company was announced before the Queensland loan, and, although the debentures carry the tempting rate of 5 per cent., the services of the underwriters have been called in, which serves t-> emphasise the distaste of the money market for colonial emissions. * * * To a certain extent the attitude of the London money market is unfortunate, as it will, in all probability, cause the postponement of many municipal and harbour improvement schemes that were in contemplation. It may, for instance, temporarily jeopardise the Wellington dock building, unless the Harbour Board can arrange for the money locally which is not unlikely. The cold reception accorded the Queensland loan brought about a decline in the Stock Exchange quotations of other colonial stocks. The position of the London money market will make Colonial Treasurers* careful about their commitments. * * ♦ The dangers 1 threatening the monetary world are centred in the United States. The multiplication of trusts and combines, and the vigorous watering of the capital of these concerns, is now being felt. The bulk of these corporations are not paying dividends, the securities are still in first hands, and cannot be moved on to the public because such an operation would mean a ruinous loss. * * * Railway securities have declined

sixty-nine millions sterling since January last, and yet the internal trade of the country has been very good. The monetary pinch will come in the autumn when there is a demand for money to move the crops from the interior to the seaboard. A hardening of the money rates will this year be earlier than usual. The sharemarket is fairly active, and transactions are more numerous than usual. Bank shares continue to claim attention. Bank of New Zealand shares had quittance at £4 6s, with buyers now offering £4 4s. Unions are in firm demand at £39 15s. Nationals are quiet since the payment of the dividend and sellers now ask £4 11s, with no declared buyers. * * * Financial shares are steady. Equitable Buildings changed hands at £9 12s 6d, and Wellington Buildings at £9 15s. There is an unsatisfied demand for the latter at the price quoted. Wellington Trust, and Loan shares are wanted at £7 10s. New Zealand and River Plate had business at 255, w ltli buyers now offering 25s 6d. National Mortgage shares are in request at 425. * * * Gas shares are particularly firm, but business is absent, owing to the firmness of holders. Ashburton Gas shares are wanted at £4 12s 6d, Feilding Gas at 19s 9d, Palmerston North Gas at £4 15s, Port Chalmers Gas at 31s, and Wellington Gas at £19 7s 6d and £9 12s 6d. * * * In meat shares there has been fair business recorded in Gears, at £6 12s and £7 for the £4 paid-up shares and 36s 6d for the £1 shares. Wellington Meat Export shares had quittance at £5 15s 6d for the £4 shares, and £3 14s 6d for 52s 6d paid-up shares. Other meat shares are quiet. * * * Woollen shares are in food demand, at full rates. There are buyers of Kaiapoi Woollen shares at £6 7s 6d, Mosgiels at 81s, and Wellington Woollens at 107s. * * * Miscellaneous stocks are comparatively quiet. Westport Coal shares are in demand, at £7 ; Donaehv Rope and Twine at £12 15s; New Zealand Candle, at £9 ; and New Zealand Drug, at 46s 6d. * * • Mining calls for no special mention. The severe weather experienced in the South has affected the dredging returns, and speculation has, in consequence, languished.